http://www.livemint.com/Opinion/tLOoYm9NRr1eo46Zkdyu7M/Why-the-banks-are-in-such-a-mess.html
If one had to pick out just one reason for the spurt in bank bad loans, what would it be? Consider this little statistic: bank loans outstanding to the infrastructure and metals sector currently account for over half the total loans outstanding to industry. It wasn’t always this high: chart 1 shows that at the end of March 2005, it was 29.8% of total industrial credit. Since then, this percentage has been rising steadily—reaching above the 50% mark this fiscal.
If one had to pick out just one reason for the spurt in bank bad loans, what would it be? Consider this little statistic: bank loans outstanding to the infrastructure and metals sector currently account for over half the total loans outstanding to industry. It wasn’t always this high: chart 1 shows that at the end of March 2005, it was 29.8% of total industrial credit. Since then, this percentage has been rising steadily—reaching above the 50% mark this fiscal.
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